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A judge in Staten Island, N.Y., temporarily blocked New York City Zohran Mamdani’s (D) rollout of a new tax on second homes worth more than $5 million, according to multiple reports.
The ruling from Judge Wayne Ozzi, a Democrat on the state’s Supreme Court, required the city to take down a public list of 900,000-plus homes the tax could apply to. It also barred the city from taking further action based on letters it sent to roughly 17,000 property owners regarding the impending “pied-à-terre” tax.
Ozzi issued the ruling in a lawsuit a group of homeowners brought against Mamdani’s administration last week. Randy Mastro, the former first deputy mayor of New York City under Mamdani’s predecessor, Eric Adams (D), is reportedly representing the plaintiffs.
Shortly after Ozzi’s ruling, the city filed court papers Monday evening to appeal, according to The New York Times. The move blocks Ozzi’s order from taking effect until a higher court weighs in.
The Hill has reached out to Mamdani’s office for comment.
Mamdani teamed up with New York Gov. Kathy Hochul (D) in proposing the tax in April, which they said would help narrow the city’s budget deficit. Mamdani said in May he was able to balance the city’s $12 billion budget gap via state support and savings — and without having to raise property taxes.
The tax would be an annual surcharge on one- to-three-family homes, condominiums and co-ops owned by individuals who have a separate primary residence.
While the proposal from the mayor and governor projects the tax would produce $500 million in additional annual avenue, an analysis of a similar proposal that the city’s independent budget office conducted in 2019 found it would generate $232 million.
Mamdani notified property owners of the new tax last month, sending the aforementioned letters the plaintiffs sued over. Mamdani said at the time the city needed “long-term solutions” to its fiscal challenges.
“Today is the first step in implementing this tax and collecting critical revenue to fund our parks, schools and libraries,” Mamdani added in a release. “We will diligently implement this law and ensure that we collect what working New Yorkers — and this city — deserve.”
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